Chrysler Offers Gas Card as Incentive

[jessi_chan]

http://autos.yahoo.com/articles/autos_cont...wNnYXMtY2FyZA--

Now this sounds interesting! I wonder how well this will work out...

[Satty]

Mileage limits (who drives less than 12,000 miles a year?) excluding diesel and a gas card in lieu of rebates on some models, makes this a ridiculous program. Do the math, a Ram 1500 V6 gets an epa estimate 16/21, an average of 18.5 mpg (assuming thats how they figure the average) over 12,000 miles, thats 649 gallons of gas. If gas gets as high as $4.50, thats a savings of $979.99/year or $2939.97 over 3 years. An Avenger, which gets 21/30 for an average of 25.5, it works out to 471 gallons, which works out to $711/yearor $2133/ 3 years. Hardly seems worth it, since the monthly payment will be higher and if you want to unload the car at the end of 3 years, you'll owe more than if you took the rebates.

[Newbiewar]

Mileage limits (who drives less than 12,000 miles a year?) excluding diesel and a gas card in lieu of rebates on some models, makes this a ridiculous program. Do the math, a Ram 1500 V6 gets an epa estimate 16/21, an average of 18.5 mpg (assuming thats how they figure the average) over 12,000 miles, thats 649 gallons of gas. If gas gets as high as $4.50, thats a savings of $979.99/year or $2939.97 over 3 years. An Avenger, which gets 21/30 for an average of 25.5, it works out to 471 gallons, which works out to $711/yearor $2133/ 3 years. Hardly seems worth it, since the monthly payment will be higher and if you want to unload the car at the end of 3 years, you'll owe more than if you took the rebates.

you'd be suprised... people dont usually think things out... also, gm already did this in 06 was it? i think it was just a trial program for a month or two... but it was on top of rebates, which made it good... but i think it was a little different i forget.

kind of like hybrids, people really dont do the math before buying... and if it sounds good... kinda get gas rolled into the loan, stupid, but it works... its good for chrysler financial, if its financed through them.

[Satty]

When I bought the Fusion, Ford was offering a $1000 gas card or $1000 rebate. Well, duh, I took the rebate (on top of the negotiated price) because thats less to pay in interest over the course of the loan. If a lot of people fall for this, it will confirm my theory that Dodge buyers are the least intelligent of all car buyers.

[Intrepidation]

When I bought the Fusion, Ford was offering a $1000 gas card or $1000 rebate. Well, duh, I took the rebate (on top of the negotiated price) because thats less to pay in interest over the course of the loan. If a lot of people fall for this, it will confirm my theory that Dodge buyers are the least intelligent of all car buyers.

[Croc]

When I bought the Fusion, Ford was offering a $1000 gas card or $1000 rebate. Well, duh, I took the rebate (on top of the negotiated price) because thats less to pay in interest over the course of the loan. If a lot of people fall for this, it will confirm my theory that Dodge buyers are the least intelligent of all car buyers.

Only if people are taking out loans for their cars. Purchase outright, then the 3 year gas deal starts looking pretty good.

[Satty]

Problem is, nobody buys straight cash, this is America, we take out 72 month loans at 11.9%.

[Newbiewar]

Problem is, nobody buys straight cash, this is America, we take out 72 month loans at 11.9%.

during my year + at the dealership, i only made 1 cash deal that i can remember... guy wanted to put it on his credit card for some frequent flier miles, or something, but we didnt allow more then 3k on the card due to steep fees (4-5%) i think but he just wrote us a check... it was more common with used cars, but then with used cars your not talking about a 25k trail blazer...

[Croc]

Problem is, nobody buys straight cash, this is America, we take out 72 month loans at 11.9%.

There are a lot of people who will write a check. Maybe not the majority of America, but still a lot of people who can actually afford the car they're buying outright.

[Satty]

Other than the 300C and occasional Jeep, is there any Chrysler product that would appeal to the kind of person who can afford to write a check for $30k+?

[Intrepidation]

Other than the 300C and occasional Jeep, is there any Chrysler product that would appeal to the kind of person who can afford to write a check for $30k+?

Viper, possib;y Vharger (not all Charger sales are SE's after all).

[regfootball]

There are a lot of people who will write a check. Maybe not the majority of America, but still a lot of people who can actually afford the car they're buying outright.

buying a car outright is actually a bad idea.

buy a new car. boom, you just lost 10 grand in depreciation. wait, you ruined the car in an accident, now they won't give you what you paid for it to replace it. you just gave away thousands!

maybe you should have saved your cash and leased the car with gap coverage. or took out a loan on monthly payments and invested the cash you had in the bank to make money on it instead of giving it to the greedy car dealer.

Edited May 11, 2008 by regfootball

[Croc]

buying a car outright is actually a bad idea.

buy a new car. boom, you just lost 10 grand in depreciation. wait, you ruined the car in an accident, now they won't give you what you paid for it to replace it. you just gave away thousands!

maybe you should have saved your cash and leased the car with gap coverage. or took out a loan on monthly payments and invested the cash you had in the bank to make money on it instead of giving it to the greedy car dealer.

Leasing, though, forces you to pay more than purchasing outright, assuming you actually like the car and want to own it past the balloon payment.

Also, while Chrysler may not have the most desirable lineup now, many of their vehicles are pretty safe and would be appealing for parents to buy as a first car, or graduation present, for their kid.

[ocnblu]

I was looking over a Caliber rental the other day at work, returned by a customer. That thing is not a pretty car by any stretch. Useful yes, pretty, NO. And I haven't seen any SRT-4 Calibers, except at the Auto Show. I do like the Avenger sedan, even if it reminds me so much of a mid-70's Dart in execution, especially in base trim (which has an appeal to some folks, a workaday car you don't have to pamper). The Avenger SXT and R/T are distinctive and appealing, at least to me, especially without the spoiler. The Charger is a very good product with the 3.5L and Hemi. I am starting to see a lot of Sebrings without green "E" stickers. I think my main problem with the Sebring is the way oversized headlights and the hood strakes. The interior is distinctive, even if it has the appearance of being slightly Fisher-Price in materials. The 300 made Chrysler cool again, and it is still an appealing car.

[Intrepidation]

I was looking over a Caliber rental the other day at work, returned by a customer. That thing is not a pretty car by any stretch. Useful yes, pretty, NO. And I haven't seen any SRT-4 Calibers, except at the Auto Show. I do like the Avenger sedan, even if it reminds me so much of a mid-70's Dart in execution, especially in base trim (which has an appeal to some folks, a workaday car you don't have to pamper). The Avenger SXT and R/T are distinctive and appealing, at least to me, especially without the spoiler. The Charger is a very good product with the 3.5L and Hemi. I am starting to see a lot of Sebrings without green "E" stickers. I think my main problem with the Sebring is the way oversized headlights and the hood strakes. The interior is distinctive, even if it has the appearance of being slightly Fisher-Price in materials. The 300 made Chrysler cool again, and it is still an appealing car.

The Avenger, with a good interior and more refined/better powertrain options would be a very competitive car.

[Satty]

The Avenger, with a good interior and more refined/better powertrain options would be a very competitive car.

Its never a good sign for a midsize sedan when the 2 most important parts of a car (interior and drivetrain) need to be completely overhauled for the car to be competitive.

I agree with reg on leasing making a lot more sense than buying outright, because after 3-4 years, you can be off the hook, and for a person who has the funds available to buy a new car outright, that would be appealing because at the end of the term they can lease a new car, with updated features and a full warranty.

Want to know whats odd? The only Refuel America commercials I've seen have been Jeep commercials, but the Wrangler is the only regular model excluded by the program, I wouldn't consider any SRT models, or the Sprinter, Viper, Crossfire, Ram Chassis Cab, and Challenger regular models.

I still think it would require a great degree of stupidity to forgo regular rebates to get a gas discount that would put the gas on a credit card (which you would pay interest on) and be forced to finance a larger amount, which you would in turn pay more interest on.

[Intrepidation]

Its never a good sign for a midsize sedan when the 2 most important parts of a car (interior and drivetrain) need to be completely overhauled for the car to be competitive.

I agree with reg on leasing making a lot more sense than buying outright, because after 3-4 years, you can be off the hook, and for a person who has the funds available to buy a new car outright, that would be appealing because at the end of the term they can lease a new car, with updated features and a full warranty.

Want to know whats odd? The only Refuel America commercials I've seen have been Jeep commercials, but the Wrangler is the only regular model excluded by the program, I wouldn't consider any SRT models, or the Sprinter, Viper, Crossfire, Ram Chassis Cab, and Challenger regular models.

I still think it would require a great degree of stupidity to forgo regular rebates to get a gas discount that would put the gas on a credit card (which you would pay interest on) and be forced to finance a larger amount, which you would in turn pay more interest on.

True enough, but it does have a compitent chassis, something not all of the midsizers (Camry) can say.

[Satty]

Have you driven a Camry? The Camry Hybrid we drove was exceptional on the highway and on poor roads, though I will say this, it didn't carve corners like a Mini, but it had what midsize sedan buyers want. Well, everything except trunk space.

[A Horse With No Name]

buying a car outright is actually a bad idea.

buy a new car. boom, you just lost 10 grand in depreciation. wait, you ruined the car in an accident, now they won't give you what you paid for it to replace it. you just gave away thousands!

maybe you should have saved your cash and leased the car with gap coverage. or took out a loan on monthly payments and invested the cash you had in the bank to make money on it instead of giving it to the greedy car dealer.

Some cars do hold very good resale value, esp. small cars with the price of Gas.

Try to buy a MINI, Mazda 3, a Cobalt or G5 for ten grand less than list...you'll be buying a 5 year old car with 80k.

You can pay cash for a new car...but gap insurance at $500-$1000 isn't always a good deal.

Chris

[A Horse With No Name]

The Avenger, with a good interior and more refined/better powertrain options would be a very competitive car.

Your starting to make me see the light and the error of my ways, Reverend DF, and I am starting to think the Avenger really is a decent product.

Chris

[A Horse With No Name]

Have you driven a Camry? The Camry Hybrid we drove was exceptional on the highway and on poor roads, though I will say this, it didn't carve corners like a Mini, but it had what midsize sedan buyers want. Well, everything except trunk space.

Camry isn't a bad car, but there are better midsized cars.

Chris

[Satty]

Camry isn't a bad car, but there are better midsized cars.

Chris

I was speaking in terms of hybrid models, where the only other option is the half-hybrid Malibu/Aura.

[Intrepidation]

Have you driven a Camry? The Camry Hybrid we drove was exceptional on the highway and on poor roads, though I will say this, it didn't carve corners like a Mini, but it had what midsize sedan buyers want. Well, everything except trunk space.

From C&D:

Which isn’t to say the car came up snake-eyes. The front-passenger seat folds flat, and the cushions are firm, with seatbacks that are supportive in the right places. The gauges feature easy-to-read black numerals on white faces. The steering proved agreeably accurate, with appropriate heft. You can store chilled drinks in the beverage bin. The chassis remained composed when called on to hustle. And our 22,000-mile test car was not only the least expensive in this group—by a wide margin—but also more rattle-free than the Camry.

I'm not trashing the Camry, although I would pick almost any other midsizer over it, but the Camry is the opposite of the Avenger: good powertrain and reasonable interior (but no where near the nicest in class) in search of a better chassis. Other reviews like from edmunds mention this too. Thing is that the powertrain/interior/quiet ride are, as you said, what people in the segment look for, not so much sporting pretensions.

[Croc]

Other than the 300C and occasional Jeep, is there any Chrysler product that would appeal to the kind of person who can afford to write a check for $30k+?

:rotflmao:

No car payment, cash purchase. I'll have farewell pics of the Cavalier along with this one.

See? Some people buy outright.

What's the $30k+ limit, though? Doesn't the gas card apply to all Chryslers except the Charger, Crossfire, etc?

[Satty]

Buyers who use cash are the minority, a very small minority, definitely not large enough to justify a program like this. And the $30k+ comment was based on the average price paid for a new car being in the neighborhood of $27-$28k, or at least it was a couple years ago, I assume its about the same now.

[regfootball]

Some cars do hold very good resale value, esp. small cars with the price of Gas.

Try to buy a MINI, Mazda 3, a Cobalt or G5 for ten grand less than list...you'll be buying a 5 year old car with 80k.

You can pay cash for a new car...but gap insurance at $500-$1000 isn't always a good deal.

Chris

i'm pretty sure i have built in gap insurance and it wasn't extra, but i'll have to check that. i think gm smart leases have gap protection too.

[Satty]

Gap is almost always extra (unless you get the dealer to include it, which happens, apparently) but isn't that expensive, like $300 on the Fusion, totally worth it. I know it was worth the $250 on the Solara, cause it saved me about $4k.

[Satty]

Hows that $2.99/gallon set price working now?